Block Inc., under the leadership of Jack Dorsey, has initiated a series of layoffs as part of its efforts to downsize its workforce by the end of the year.
As reported by Business Insider, Block has begun a phased reduction of its staff, with the goal of trimming its current workforce, which stands at around 13,000 employees, by as many as 10 individuals.
This move is aligned with the company’s strategic objective to limit its total workforce to no more than 12,000 employees by the conclusion of the year 2024.
Jack Dorsey’s Layoff Decision
In a recent message to Block employees, CEO Jack Dorsey announced the company’s decision to implement layoffs.
According to a note obtained by Business Insider, Dorsey, who is also a co-founder of Twitter, did not specify the exact number of employees affected. However, a source familiar with the situation indicated that it was close to 1,000 employees.
The layoffs primarily impacted personnel across Block’s various divisions, including Cash App, Foundational, and Square. Dorsey emphasized that these actions were part of a broader initiative aimed at streamlining operations and enhancing efficiency throughout the company.
Dorsey stated in the note, “Today our Cash App, Foundational, and Square teams are parting ways with a large number of our teammates. Following the ‘constraints’ email I sent last year, each team took some time to assess themselves with a focus on improved performance and more rigorous prioritization.”
Block’s Second Round of Downsizing
Block initially announced its intention to limit its workforce during the release of its third-quarter earnings report in November 2023.
This recent round of layoffs marks the company’s second workforce reduction in just two months. In December, Block had already cut 40 employees, primarily from its Tidal music streaming service division.
Jack Dorsey commented on the timing, saying, “Why is so much happening in one single day? All of these teams were confident in the direction they’re taking, and were ready to take action within the same 2-3 weeks.”
He further explained, “When we recognize the need for action, we prefer to act promptly rather than let issues linger indefinitely.”
